Tweet
Music industry: CD remains best form of music
By ANGELA PACIENZA
TORONTO (CP) -- Don't be tempted to get rid of your CD library just yet.
Despite the soaring popularity of digital music players such as IPod, Rio and Nomad, the shiny discs remain the only way to keep an audio library safe in the years ahead, executives in town for Canadian Music Week said Thursday.
That's because the online phenomenon of the 99-cent song is still facing a major hurdle -- standardized digital formats.
"It's a huge problem," says Josh Green, a media analyst from Jupiter Research in New York, following a panel discussion on the state of the music industry.
"Buying CDs is still the best way to get music these days."
Aside from offering the best sound quality, the "old-fashioned" CD ensures the owner will be able to use the content in various formats, whether on a computer, digital music device or cellphone.
Online music stores sell songs in their own built-in format, what insiders call Digital Rights Management or DRM.
The popular IPod player, for example, does not support Windows Media Audio (WMA) files -- the format sold on places at online stores like puretracks.com.
Likewise, a Rio, Creative or Nomad player won't play Advanced Audio Coding (AAC files), which is what the ITunes music store sells.
That could pose a problem if a music fan wants to buy an exclusive track from an online music store but doesn't own a player that is compatible.
In that instance, they'd be lured to an unsanctioned site like Kazaa, notes Green.
In addition, those who replace their players down the road with the latest music gadget may not be able to access their existing digitized collection.
They would have to re-rip their entire CD collection or worse, buy it again if it was all bought online.
Although there are some technical tricks to manoeuvre around the problem, Greens says average Joe and Jane consumer could be left with a messy, time-consuming problem.
"Right now the only way to get digital music that can be completely transportable (between devices) is to buy a CD and rip it onto your computer, or (download) from peer-to-peer sites," he said.
"You can do with that file as you wish. You can put it on an IPod, you can put it on a Rio, you can put it on a Nomad."
It's a problem not exclusive to the music industry.
Digital cameras, for example, don't all use the same memory cards. An Xbox game won't work in a Playstation 2.
And, let's face it, no one wants to be caught owning one type of music file while everyone else owns another. Remember how frustrated Beta folks were when the whole neighbourhood had VHS?
Industry analysts say the issue will work itself out as companies eventually form partnerships with one another.
But in the meantime, the "inter-operability" of players and stores is slowing down the music business, says Graham Henderson, president of the Canadian Recording Industry Association.
"We gotta find a way to get AAC playing on Zen Creative (MP3 players) and WMA's playing on IPods," he said, following his keynote address to delegates.
"It's holding us back."
He told delegates that "the CD continues to be the mainstay of our business."
"With all of the focus devoted in the media to digital . . . the CD just plods on," he said.
The issue could play itself out sooner than we think via the cutthroat business world.
In recent weeks there have been rumours that some labels want to hike distributor prices to the online stores. A hike could see prices raised above 99-cent to $1.49 which could drive business away from some of the smaller players. That action could eventually see mergers between stores.
By ANGELA PACIENZA
TORONTO (CP) -- Don't be tempted to get rid of your CD library just yet.
Despite the soaring popularity of digital music players such as IPod, Rio and Nomad, the shiny discs remain the only way to keep an audio library safe in the years ahead, executives in town for Canadian Music Week said Thursday.
That's because the online phenomenon of the 99-cent song is still facing a major hurdle -- standardized digital formats.
"It's a huge problem," says Josh Green, a media analyst from Jupiter Research in New York, following a panel discussion on the state of the music industry.
"Buying CDs is still the best way to get music these days."
Aside from offering the best sound quality, the "old-fashioned" CD ensures the owner will be able to use the content in various formats, whether on a computer, digital music device or cellphone.
Online music stores sell songs in their own built-in format, what insiders call Digital Rights Management or DRM.
The popular IPod player, for example, does not support Windows Media Audio (WMA) files -- the format sold on places at online stores like puretracks.com.
Likewise, a Rio, Creative or Nomad player won't play Advanced Audio Coding (AAC files), which is what the ITunes music store sells.
That could pose a problem if a music fan wants to buy an exclusive track from an online music store but doesn't own a player that is compatible.
In that instance, they'd be lured to an unsanctioned site like Kazaa, notes Green.
In addition, those who replace their players down the road with the latest music gadget may not be able to access their existing digitized collection.
They would have to re-rip their entire CD collection or worse, buy it again if it was all bought online.
Although there are some technical tricks to manoeuvre around the problem, Greens says average Joe and Jane consumer could be left with a messy, time-consuming problem.
"Right now the only way to get digital music that can be completely transportable (between devices) is to buy a CD and rip it onto your computer, or (download) from peer-to-peer sites," he said.
"You can do with that file as you wish. You can put it on an IPod, you can put it on a Rio, you can put it on a Nomad."
It's a problem not exclusive to the music industry.
Digital cameras, for example, don't all use the same memory cards. An Xbox game won't work in a Playstation 2.
And, let's face it, no one wants to be caught owning one type of music file while everyone else owns another. Remember how frustrated Beta folks were when the whole neighbourhood had VHS?
Industry analysts say the issue will work itself out as companies eventually form partnerships with one another.
But in the meantime, the "inter-operability" of players and stores is slowing down the music business, says Graham Henderson, president of the Canadian Recording Industry Association.
"We gotta find a way to get AAC playing on Zen Creative (MP3 players) and WMA's playing on IPods," he said, following his keynote address to delegates.
"It's holding us back."
He told delegates that "the CD continues to be the mainstay of our business."
"With all of the focus devoted in the media to digital . . . the CD just plods on," he said.
The issue could play itself out sooner than we think via the cutthroat business world.
In recent weeks there have been rumours that some labels want to hike distributor prices to the online stores. A hike could see prices raised above 99-cent to $1.49 which could drive business away from some of the smaller players. That action could eventually see mergers between stores.
)
Comment